Housing inventory is at an all-time low, housing prices are at all-time highs, and affordability is getting further out of reach for more individuals every day. These factors are combined to create a perfect storm for homebuyers rapidly running out of options. In addition, home prices have risen in tandem with increasing construction and labor expenses. According to the National Association of Home Builders, median new-home sales prices increased 17.5 percent to $407,700 in October from the previous year.
In an interview with Bill Dallas, the president of Finance of America Mortgage, he spoke extensively on how lenders and brokers can serve more borrowers despite these challenges; He encouraged lenders to meet borrowers where they are, which means avoiding the one-size-fits-all technique of qualifying borrowers for a mortgage. This also translates to the fact that lenders need to stop considering clients as transactional customers but create relationships with them and serve as long-term loan advisers.
Lenders and brokers must reconnect with previous clients and demonstrate their worth. The skills and understanding possessed by lenders are the primary sources of that value. Lenders have proven to be mortgage and home equity experts that can show borrowers how to take a holistic approach to understand how their mortgage and home equity decisions affect their entire financial health.
To serve more borrowers, lenders must increase their outreach, education, follow-up, and connections with referral partners to ensure that consumers realize the critical role lenders play in assisting borrowers in achieving their homeownership goals. To read more on how lenders can have a positive impact on the housing affordability challenges facing borrowers, click here.
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